FREQUENTLY ASKED QUESTIONS

Introduction

As a plaintiff, you have a right to know about the safest, no-risk option available to get the money you need now to relieve financial pressures. A litigant waiting for a settlement or judgment from a lawsuit can qualify for a cash advance ranging from $500 to $50,000 for a personal injury case.

Lifeline Legal Funding is structured and funded to handle the financial risk associated with litigation that you, as an individual cannot.

This brief document is designed to help you if:

• You are a plaintiff in a personal injury lawsuit.

• You are waiting for payment from a judgment or settlement.

• You need a low-risk option to obtain cash during the legal process that doesn’t require your personal credit to secure a loan.

Why do plaintiffs come to Lifeline Legal Funding for legal funding?

It is no secret that wealthy defendants – including insurance companies, pharmaceutical companies, manufacturers selling faulty products and transportation companies, among others – can afford to have entire teams of lawyers on call to handle lawsuits. Their job is to make lawsuits “go away” if they can, protect the reputation of the defendant, and keep settlements and judgments as low as possible.

You may have already been in court and seen their tactics. In fact, you may have been shocked to find a defendant’s lawyer trying to imply that you were at least partially responsible for the injury (personal or financial) that is at the center of your lawsuit. If the defendant’s lawyers see they are on the losing end of the argument – and often they realize that right from the start – they may try another tactic. They simply use the already slow judicial system to delay a resolution, with endless filings, continuances and other perfectly legal strategies to postpone a fair resolution.

The simple truth is the defendant often can pay less by hiring high-priced lawyers to play the game and wear you down than by giving you the fair settlement you deserve in a timely way. If your lawyer is confident you have a solid case, then he or she has most likely agreed to handle your lawsuit on a contingency basis. This means your attorney’s payment for legal services is a percentage of the money you receive at the conclusion of the trial. Taking a case on a contingency basis means your lawyer has a lot of confidence in your case and will work very hard to win, or there will be no fee. Since deep-pocket defendants can “buy time” with legal ploys and delays, plaintiffs are often pressured financially, because medical bills and other expenses – not to mention lost wages – add up to a budget stretched beyond its limits.

This, in turn, can cause a lot of emotional strain on the family. What your lawyer needs, in order to get you the best settlement or fairest trial, is time. Just as the defendants can “buy time,” so can you. Lawsuit funding from Lifeline Legal Funding allows you to get relief from financial pressure so you do not have to settle your case simply because you need whatever money you can get now.

What are the alternatives?

People who need funds while waiting for a lawsuit to be resolved and a fair settlement to be paid have a few options, but some carry more risk than others.

• You can use your own credit cards. This is an expensive alternative and can actually put you even more at risk if the lawsuit takes longer than you anticipate to be settled. You still have to pay your monthly credit card bills. And you could wind up owing money you are not able to repay.

• You can borrow money from friends or family. This also is high risk, especially if, in the end, you cannot wait for a fair outcome. You will still owe your friends or family, and you may not have the money to pay them back.

• You can take out a bank loan. Banks do not generally make loans against future settlements on personal injury cases, but may offer a personal line of credit to individuals, based on their financial situations and credit worthiness. Often, plaintiffs are not in a strong enough financial position to qualify for this type of “signature” loan. Even if you do qualify, you have to start paying back a bank loan right away and continue making payments until it is paid off, no matter when you receive your settlement and even if you lose your case and receive no money.

• You can obtain a home equity loan or second mortgage. This option is extremely risky. If for some reason you do not win your case, you could lose your home.

• In all cases where you have to qualify for personal financing based at least in part on your credit history, you must consider the possible consequences in the future.

The best option is a cash advance from Lifeline Legal Funding – the totally safe, secure, no-risk solution. You only repay if and when you win your case. This protects your assets and any needless jeopardy to your credit history.

How is Lifeline Legal Funding different than other legal funding companies?

Choosing a solid, reputable company like Lifeline Legal Funding to secure your funding is essential. We have sufficient funds to write you a check immediately. If you qualify for your first advance, and need additional funds later, Lifeline Legal Funding will have ready funds available when you need them, up to your qualifying amount.

In addition, Lifeline Legal Funding has developed a system to get fast approval for lawsuit and settlement cash advances to plaintiffs – often in as little as 24 hours. In addition, once you are approved, we can wire the money to the account designated on the same day the advance is authorized. Lifeline Legal Funding has gained an excellent reputation with lawyers and plaintiffs alike as a result of fast, dependable service. Lifeline Legal Funding offers a simple one-price structure, with no up-front costs and no hidden fees or extras to pay.

Other Frequently Asked Questions

What is lawsuit funding?

Lawsuit funding is a non-recourse cash advance against the expected settlement of a lawsuit, most often to supplement lost income resulting from a personal injury. The cash advance may be made before or after a settlement is agreed to.

How does a cash advance work?

Plaintiffs can qualify for a cash advance, of a portion of the expected settlement amount. Cash advances are based on the merits of the case and cash awards from similar cases. Lifeline Legal Funding has streamlined the process to make it as fast and easy as possible to get the funds you need. Please visit our How It Works page to learn more about the process.

Is lawsuit funding legal?

Many people, including some lawyers, do not realize that legal funding and cash advances have been made in most states in the United States. Legal funding is supported by many justices, court decisions and published legal opinions. That said, legal financing firms including Lifeline Legal Funding exclude some cases from funding, depending on the state.

What kinds of cases can be funded through Lifeline Legal Funding?

We specialize in Personal Injury, Worker’s Compensation and Wrongful Death cases.

What is the difference between settlement and pre-settlement funding?

Settlement funding is available when a settlement has been awarded, but not yet paid to the plaintiff. Pre-settlement funding is based on an anticipated settlement amount given the facts of your lawsuit and other factors.

Must I have an attorney?

Yes. You must have an attorney and your attorney must be working for you on a "contingency fee" basis. You cannot qualify for lawsuit funding if you are acting as your own attorney or if your attorney is working for you on an "hourly fee retainer" basis.

Can I get an advance if I am unemployed or have bad credit?

Yes. Since our advance is not a loan and doesn’t require periodic payments, you need not have a job or a good credit history. However, if you are currently in a bankruptcy proceeding, we cannot help you.

How much money can I get from lawsuit funding?

For cases that have not settled yet, the amount that can be advanced is about 10-15% of the estimated settlement amount. The settlement value is based on the severity of your injuries, the amount of treatment you have received for those injuries, and the amount of insurance coverage available to compensate you for those injuries. The minimum advance amount is usually $500. If a settlement agreement has been signed, it may be possible to get an advance of more than 10% of the agreed settlement.

If I have received advances from another company, can I qualify for an advance from Lifeline Legal Funding?

Probably not. There is a limit to how much lawsuit funding can be done on any case.

Is this type of funding expensive?

Like your lawyer who only gets paid if you win, we take a risk by advancing you money. You take no risk at all. You only repay if you win or receive a settlement. We find that when people understand we are protecting them from ALL the risk they would have by getting money from friends, family, a home equity loan or credit cards, they do not object to paying us from a lawsuit settlement. In addition, before you sign anything with Lifeline Legal Funding, you know exactly what you will receive and how much you will repay when you get your settlement or judgment. With Lifeline Legal Funding, there are no hidden costs. And no fine print gets added to surprise you.

Are any upfront fees required to get lawsuit funding?

No, all fees are deferred until your case settles.

How much is lawsuit funding going to cost me?

There are fees associated with the use of the money you receive from lawsuit funding. There may be a combination of both one-time fees and monthly fees. Our fees vary based on the funding structure and the length of time it takes to settle the case. We believe our pricing policy to be the one of the most competitive, fair and simple in the industry. All fees will be disclosed to you as part of the process to determine whether lawsuit funding can be obtained for your lawsuit.

Why should I go through the expense of getting lawsuit funding?

If the cash advance on your lawsuit will provide your attorney the time needed to obtain the settlement you really deserve, then it may be worth the expense to get the lawsuit funding. It may also be worth the expense to you if it will help you through a difficult financial situation. Such situations include avoiding foreclosure on your home, avoiding eviction from your apartment, avoiding repossession of your vehicle, avoiding shutoff of your utilities, or just keeping food on your table. Insurance companies that usually pay out the settlements will wait as long as possible to settle with you. You and your attorney should discuss what strategy might be best for you. See our Legal Funding Benefit Illustration.

Do I have to make monthly payments while I am waiting for my lawsuit to settle?

No. Lawsuit funding provides you with a cash advance which is not a loan. You will pay the cash advance amount plus fees owed for the use of the cash advance if, and when the lawsuit settles, and then only if there is a recovery in your case. Of course, you always have the option of paying back the advance plus fees owed before the case settles, if you choose.

Do I have to take my lawsuit funding advance as a single payment?

No. In fact we recommend small monthly advances rather than one large advance to reduce the cost of our service. For example, if you were seriously injured and your case qualified for an advance of $24,000 to cover your expenses for the next year while you recover, then we would recommend monthly advances of $2000 over each of the next 12 months. This way, you will pay fees on only what you use for the time you use it.

Can I contact Lifeline Legal Funding before I’ve spoken to my attorney about a cash advance?

Yes, but your attorney’s cooperation is necessary to complete an advance. Your attorney must send your documentation to us, so the sooner he or she is involved, the faster you can receive funds.

Does my attorney need to approve my request for lawsuit funding?

Yes. We strongly suggest you discuss your need for lawsuit funding with your attorney before you request a lawsuit cash advance from our company. Most attorneys will not support a request for lawsuit funding unless they believe it serves the needs of their client. Your attorney's support is essential. They will be asked to provide information and documents about your case and, if you are approved for lawsuit funding, both you and your attorney must approve the lawsuit funding agreement.

Am I obligated to use Lifeline Legal Funding if I start the funding process?

No. Completing the application is the only way for us to determine how much you may be qualified to receive. There is no obligation until you and your lawyer sign the Purchase Agreement.

Does Lifeline Legal Funding get involved in legally representing me?

No. Your attorney is your legal representation. You and your attorney retain complete control of your case. We do not interfere with how your case is handled and are only involved to provide you with the lawsuit funding. Many personal injury attorneys have found that their cases are resolved more effectively when given the appropriate time to develop.

What can I use legal funding advances for?

You can use our advances to pay your mortgage or rent, utility bills, tuition, groceries, medical expenses and/or any other basic or necessary living expense. We can also work with you to provide these funds on a pre-determined schedule (monthly, bi-monthly or quarterly) to cover repetitive living expenses. We typically discourage applications for funds to be used for luxury items.

What if I win my case, but the amount I receive is less than what I owe Lifeline Legal Funding?

We are simply paid the amount you recover and you owe nothing further.

What do I do next?

We will be happy to confidentially discuss your situation and answer any questions you may have. A brief phone call is generally enough to inform us of the basics of your case and enable us to determine if it fits our initial guidelines. Or, if you prefer, complete and submit our Online Application. It’s that simple!